European Central Bank Executive Committee member Piero Cipollone said interest rate cuts in JunesouthparkwheeloffortuneThe time is ripe, echoing comments made a day ago by management committee member Fabio Panetta.
Cipollone said during an economic festival organized by Il Sole 24 Ore in Trento, Italy last Sunday: "southparkwheeloffortuneI expect the next ECB meeting to start cutting interest rates first, and then we will have to discuss it, we will wait and see, we will rely on the data (to make decisions)."
He added: "Recent data moving in this direction has strengthened our confidence that we will be able to reduce the restrictive stance of monetary policy."
At present, the signal that the European Central Bank will cut interest rates in June has been widely conveyed. Although hawkish policymakers, including Joachim Nagel and Isabel Schnabel, have said they do not want another rate cut in July, most officials have remained silent about what happens after.
Cipollone's remarks echoed remarks made by Italian central bank governor Panetta on the sidelines of a meeting of G7 finance ministers and central bank governors in Stresa on Saturday, when Panetta said he had conditions to change monetary policy at the June 6 meeting.
"Our principle is to make decisions at a meeting, but I do believe that the consensus has broadened and even those with more doubts are starting to shift their minds and agree on a rate cut," Panetta said.
Asked whether G7 officials had discussed the state of banks at this juncture, Panetta said,"What we are seeing today in Italy and Europe is a healthy, well-capitalized banking system."